HelloFrom what I understand, with no experience in real estate investing, mobile homes only depreciate and that banks don’t see them as having any increase in value after repairs.

However, they need something in writing stating you will be charged if you fail to turn in the keys.

Tenant has continued to make payments failed payments and failed to keep up property with violations from the city.

He explained that their bank client doesn't want it due to fair housing.I'm assuming it's part of fair housing where you can't call out a neighborhood as being "nice" or "bad" or "crappy" or "full of crime."

Your VA loan is a great benefit and you can use it to accelerate your portfolio but it does not fail proof. 

You may be considering buying 10 row houses at a particular location at a particular time but then if you fail to do some research  find out that the ciy plans to put an airport right next to where the houses you want to buy are. 

It can be at risk whether it is in the bank or under the mattress.Investing in real estate is the best way to build up more wealth and cash to buy that dream home.

So I would recommend you start your search in two main areas :  1) "bank foreclosure sales"  These are for properties foreclosed by the banks that hold mortgages in houses where the owner is not making payments.2) "tax sales".

Local banks are more likely than big ones. 

Call and talk to anyone connected to real estate: Agents, Wholesalers, lenders, banks, attorney's, surveyors, contractors, etc.... and ask a lot of questions.